Correlation Between Deutsche Bank and Burlington Stores
Can any of the company-specific risk be diversified away by investing in both Deutsche Bank and Burlington Stores at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Deutsche Bank and Burlington Stores into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deutsche Bank Aktiengesellschaft and Burlington Stores, you can compare the effects of market volatilities on Deutsche Bank and Burlington Stores and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Deutsche Bank with a short position of Burlington Stores. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Bank and Burlington Stores.
Diversification Opportunities for Deutsche Bank and Burlington Stores
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Deutsche and Burlington is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Bank Aktiengesellscha and Burlington Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burlington Stores and Deutsche Bank is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Deutsche Bank Aktiengesellschaft are associated (or correlated) with Burlington Stores. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burlington Stores has no effect on the direction of Deutsche Bank i.e., Deutsche Bank and Burlington Stores go up and down completely randomly.
Pair Corralation between Deutsche Bank and Burlington Stores
If you would invest 425,300 in Burlington Stores on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Burlington Stores or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Deutsche Bank Aktiengesellscha vs. Burlington Stores
Performance |
| Timeline |
| Deutsche Bank Aktien |
| Burlington Stores |
Deutsche Bank and Burlington Stores Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Bank and Burlington Stores
The main advantage of trading using opposite Deutsche Bank and Burlington Stores positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Bank position performs unexpectedly, Burlington Stores can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Burlington Stores will offset losses from the drop in Burlington Stores' long position.| Deutsche Bank vs. Prudential Financial | Deutsche Bank vs. Cognizant Technology Solutions | Deutsche Bank vs. GMxico Transportes SAB | Deutsche Bank vs. Genworth Financial |
| Burlington Stores vs. Cognizant Technology Solutions | Burlington Stores vs. United States Steel | Burlington Stores vs. Verizon Communications | Burlington Stores vs. Genworth Financial |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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